Behind the question of whether a billing system can help your SaaS business grow is the question of what it means for a SaaS business to grow. This guide tackles both — it creates a model you can use to approach SaaS growth and a 360-degree view of how your billing system fits into it. Read More >
Without a doubt, technology businesses are competitive. However, competition among SaaS providers is at another level given the many players in the industry targeting fairly similar prospects. In a bid to acquire users fast, most SaaS companies concentrate on marketing and sales, forgetting about their existing customers. The result is usually more spending on the cost of acquiring new customers and recurring revenues that do not spur growth or profitability.
To grow your SaaS business, churn must be lower than the cost of acquiring new customers. Below are 6 customer service tips that can help to reduce churn:
1. Contact new customers
Make an effort to personally reach customers to help them get started with your app. This is especially important if the customers have signed up for a trial or have activated their paid accounts. Using a new app can be intimidating no matter how simple the app may be.
Go beyond the traditional welcome email and help the customer get comfortable with the app. Contact users via email and invite them to beginner training webinars. This will help them be more comfortable with your app, and in effect lower the likelihood of churn.
2. Offer real-time online chat services
In the competitive SaaS world, users want answers now. Therefore, you cannot afford to be sluggish with your support. When customers are shopping around, you can lose a lead because of a delayed response. Make it easy and fast for users to contact you for support
One of the ways you can improve conversions is to have live chat on your website. This way, users can easily contact you and receive instant responses to their queries. If you have a dedicated support team, having a phone number is important.
3. Have a comprehensive learning center
Most users face the same problems and hence ask similar product-related questions. For example, users may want to know how to use a particular module or perform a specific task. These questions cannot be satisfactorily answered in the FAQ section. However, they can be covered in-depth in a “resource center” or “knowledge base” area of your website.
Most users prefer visual instructions to text. Create videos or PDFs showing an overview of your SaaS solution and how to accomplish different tasks. This will improve user satisfaction with your product, and reduce churn.
4. Conduct new user demos
One of the causes of churn is a lack of understanding how the product works. While SaaS users may be computer savvy, they will still need special training to know how to use your app. Providing product demos can help to convert new leads to sales, improve on-boarding and retain existing customers.
Some companies offer pre-recorded demos to customers. While this may work depending on your product, it may not be the most effective approach. A more effective product demo approach would be to hold a live webinar where users can see what you are doing with the app. After the webinar, users can ask questions for an immediate response.
5. Interact with users on social media
All online businesses are expected to provide email support. However, today’s consumers are taking to social media sites like Facebook and Twitter to inquire about products, voice their dissatisfaction, ask for support and so on.
Customers get on social media because they believe they will get answers faster than if they used other support avenues. Your business should be pro-active on social media, providing support and educating prospects and existing customers on your product.
6. Improve self-service support
According to a study by Forester, 72% of customers prefer self-support rather than picking up the phone to call or emailing support. Provide self-service support for your app. For example, you can integrate a forum where users can connect and help each other. Make sure the forum is moderated to allow only helpful and accurate information. Improving self-service support can spare your team hundreds of support hours, leaving you with more time to concentrate on other aspects of your business.
SaaS companies need to focus more effort in retaining existing customers for positive ROI than acquiring new customers. Acquiring new customers is 6 to 7 times more difficult than keeping existing ones. When you don’t take care of existing customers, your churn rate will increase and drive your revenues to dangerous ground. The above tips can help you improve customer success and hence reduce churn.
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